China's state-owned CCTV is continuing its attack on Baidu (BIDU), now accusing the search giant of tolerating "slanderous" posts on its message boards. CCTV has also set up a site primarily focused on criticizing Baidu's behavior. Speculation is growing over the possibility the attacks reflect broader government anger towards Baidu. (previously)

Chinese video site Youku.com (YOKU-11.3%), which fell last week following Q2 results, is nosediving today in advance of rival Tudou's IPO. Tudou, which is looking to raise as much as $180M and reportedly received a buyout offer from Baidu (BIDU), was forced to discount its offering price following the market's recent decline.

A Chinese government agency estimates there were 485M Internet users in the country at the end of June, up 6.1% from the beginning of 2011. While impressive, this figure only translates into a penetration rate of 36.2%, suggesting there are still a lot of viewers for the likes of BIDU, SINA, SOHU, NTES, and YOKU to pick up.

Baidu (BIDU+8.4%) opts to give up on its microblogging service after Twitter-clone rivals Sina (SINA+9.8%) and Tencent (TCEHY.PK) gain market share. An exec says the search firm will continue to explore new social networking ventures. Shares of all 3 firms follow Chinese tech stocks higher.

Following in the footsteps of Baidu (BIDU) and Alibaba (ALBCF.PK), Mozilla plans to develop its own mobile OS, featuring apps that run primarily on the web. In addition to the intense competition Mozilla's OS will face from Apple (AAPL), Google (GOOG), and Microsoft (MSFT), it's likely to face skepticism from those who frequently use apps while offline.

Baidu (BIDU) announces it's launching a music service in partnership with Universal Music (V), Warner Music (WMG), and Sony Music (SNE). The deal, which requires Baidu to compensate its partners for the use of their content, represents a breakthrough given how Baidu has long been accused of turning a blind eye to piracy. (PR)

Taking a page from Google Chrome (GOOG), Baidu (BIDU) is introducing a new version of its web browser which the company claims can run 30,000 web apps. With Microsoft's (MSFT) dominant position in the Chinese browser market beginning to fray, Baidu hopes the browser can drive traffic for its search engine and other web services.